H&R Block (HRB) 10-Q 2019 Q1 Quarterly report

													Exhibit 12.1
H&R BLOCK, INC.
Computation of Ratio of Earnings to Fixed Charges
(Dollars in thousands)
	Three months ended July 31,								Twelve months ended April 30,
	2018			2017			2018		2017		2016		2015		2014
Pretax earnings (loss) from continuing operations	$	(198,765	)	$	(205,219	)	$	668,732	$	629,287	$	569,479	$	742,805	$	767,116
Add: Fixed charges	40,957			40,992			171,342		171,698		145,311		116,977		125,162
Total earnings (loss) before income taxes and fixed charges	$	(157,808	)	$	(164,227	)	$	840,074	$	800,985	$	714,790	$	859,782	$	892,278
Fixed charges:
Interest expense	$	21,190		$	21,277		$	89,372	$	92,951	$	68,962	$	45,246	$	55,279
Interest on deposits	—			—			—		—		179		682		2,109
Interest portion of net rent expense (a)	19,767			19,715			81,970		78,747		76,170		71,049		67,774
Total fixed charges	$	40,957		$	40,992		$	171,342	$	171,698	$	145,311	$	116,977	$	125,162
Ratio of earnings to fixed charges:
Including interest on deposits	—			—			4.9		4.7		4.9		7.4		7.1
Excluding interest on deposits	—			—			4.9		4.7		4.9		7.4		7.2
Deficiency in the coverage of fixed charges by earnings (loss) before income taxes and fixed charges	$	(198,765	)	$	(205,219	)	$	—	$	—	$	—	$	—	$	—

(a) One-third of net rent expense is the portion deemed representative of the interest factor.

Note: In computing the ratio of earnings to fixed charges: (a) earnings have been based on income from continuing operations before income taxes and fixed charges (exclusive of interest capitalized) and (b) fixed charges consist of interest expense and the estimated interest portion of rents. Interest expense on uncertain tax positions has been excluded from fixed charges, as it is included as a component of income taxes in the consolidated financial statements.